https://www.taxtmi.com/caselaws?id=7863 Damages paid under an arbitral award for non-fulfilment of an export contract were treated as business expenditure, not speculative loss. The contract provided for damages on default, and the award arose because the assessee could not perform after failing to obtain export permission. A speculative transaction requires settlement of the contract otherwise than by actual delivery or transfer; a post-breach claim for damages does not meet that test. The payment was therefore not a loss in speculation within Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922, and was allowable under section 10. en-us Tue, 01 Jul 1969 00:00:00 +0530 Mon, 23 Mar 2009 10:40:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7863 Damages paid under an arbitral award for non-fulfilment of an export contract were treated as business expenditure, not speculative loss. The contract provided for damages on default, and the award arose because the assessee could not perform after failing to obtain export permission. A speculative transaction requires settlement of the contract otherwise than by actual delivery or transfer; a post-breach claim for damages does not meet that test. The payment was therefore not a loss in speculation within Explanation 2 to section 24(1) of the Indian Income-tax Act, 1922, and was allowable under section 10. Case-Laws Income Tax Tue, 01 Jul 1969 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7863